Crude palm oil falls 1% on global cues

Raising of soybean-crop estimate by the US, speculation that Malaysian stockpiles will expand influence prices

Tracking a weak global trend, crude palm oil prices fell by Rs 4.40 to Rs 419.70 per 10 kg in futures trade today as speculators offloaded positions.

At the Multi Commodity Exchange, crude palm oil for delivery in December fell by Rs 4.40, or 1.04%, to Rs 419.70 per 10 kg, with a business turnover of 145 lots.

The November contract traded lower by Rs 4.30, or 1.02%, to Rs 416.80 per 10 kg in 145 lots.

Marketmen said speculators trimmed positions in tandem with a weak global trend where palm oil dropped to the lowest level in three years as the US raised its soybean-crop estimate, and on speculation that Malaysian stockpiles will expand.

 

Meanwhile, palm oil for the contract for January delivery fell 4.2% to $725 a tonne on the Malaysia Derivatives Exchange, the lowest since November 2009.